Page 138 - Sebi

Sebi issues notices to 4 entities in Fortis Healthcare fund diversion case

Capital markets regulator Sebi sent notices last week to four entities asking them to pay Rs 4.56 crore within 15 days in Fortis Healthcare's case of fund diversion and misrepresentations to conceal the fraud. In addition, the regulator warned of attachment of assets and accounts if they fail to make the payment within the stipulated time. The four entities that received notices are -- Fortis Global Healthcare, RHC Finance, Shimal Healthcare and ANR Securities. The demand notices came after the entities failed to pay the fine imposed on them by the Securities and Exchange Board of India (Sebi) in May 2020. In four fresh notices dated June 9, Sebi directed them to pay Rs 4.56 crore, which includes interest and recovery cost, within 15 days. In the event of non-payment of dues, the regulator will recover the amount by attaching and selling their moveable and immovable properties. Besides, they will face attachment of their bank accounts. Also, the regulator takes the route of arrest

Mutual funds may not get holdings waiver post HDFC Bank-HDFC merger: Report

As per SEBI rules, a mutual fund scheme cannot invest more than 10% in a single security. However, exchange-traded funds and funds that invest in particular sectors are exempt

Sebi slaps Rs 40 lakh fine on Brightcom Group, promoters for flouting rules

Capital markets regulator Sebi on Tuesday levied fines totalling Rs 40 lakh on Brightcom Group and its promoters for flouting regulatory norms. Brightcom Group Ltd (BGL) is listed on both BSE and NSE. The regulator slapped a fine of Rs 12 lakh on Geetha Kancharla, Rs 6 lakh each on Vijay Kumar Kancharla HUF, Vijay Kumar Kancharla, Karta of HUF and M Suresh Kumar Reddy (Chairperson and MD) and Rs 5 lakh each on S V Rajyalaxmi Reddy and Brightcom Group Ltd (BGL). Sebi had conducted an examination in the matter of BGL to ascertain the violation of provisions of insider trading norms, if any, by certain entities while trading in the shares of the company from April 2020 to August 2021. In its examination, the regulator found that Vijay Kumar Kancharla HUF, M Suresh Kumar Reddy, S V Rajyalaxmi Reddy and Geetha Kancharla traded in the scrip of BGL during April 2020 to August 2021. They had to file necessary disclosures as they had breached the regulatory threshold of Rs 10 lakh on vario

Sebi directs MF platforms to become execution-only to cut out distributor

Capital market watchdog Sebi on Tuesday introduced a regulatory framework for 'Execution Only Platforms' for direct plans of mutual fund schemes in a bid to protect the investors dealing in such schemes. The execution-only platform allows transactions in direct plans of mutual funds without the help of distributors. The new framework would be applicable from September 1, the Securities and Exchange Board of India (Sebi) said in its circular. Over the past few years, direct plans of mutual fund schemes have gained traction among investors as such schemes are cheaper compared to the regular plans, which include a commission paid to distributors. This resulted in mushrooming of several online platforms that provide the facility of investing in direct plans. Sebi noted that several entities including investment advisors and sock brokers are providing execution services, like the purchase and redemption of direct plans of mutual fund schemes, through the digital mode. Such platforms are

Sebi to auction Arise Bhoomi Developers' assets to recover investors' money

Capital markets regulator Sebi on Tuesday said it will auction 11 properties of Arise Bhoomi Developers and its directors on July 14 for a reserve price of over Rs 43 crore to recover investors' money. The properties that have been put on sale include land parcels, a shop and a plot, located in Uttar Pradesh and Maharashtra, the Securities and Exchange Board of India (Sebi) said in a notice. Arise Bhoomi Developers mobilised over Rs 8 crore during 2013-14 from the public in the name of the 'purchase of agricultural land' through its various investment schemes, promising them an expected sum at the end of the contract. The schemes, as per Sebi, qualified to be a CIS (collective investment scheme), which requires compulsory registration from the regulator. However, the company launched the schemes without obtaining the necessary approvals from the regulator. Inviting bids, Sebi said it will auction the properties belonging to the company and its directors through an online mode on Ju

SAT to take up Zee Ent promoter plea against Sebi order on June 15

'Principles of natural justice' not followed, say legal representatives

Zee board to review Sebi order on Subhash Chandra and CEO Punit Goenka

The board is currently reviewing the detailed order and appropriate legal advice is being sought in order to take the next steps as required, Zee Entertainment Chairman R Gopalan said

Top headlines: Sebi debars Chandra, Goenka; Skymet predicts bleak monsoon

Business Standard brings you the latest headlines at this hour

Sebi debars Subhash Chandra, Punit Goenka from holding key positions

Regulator passes interim order following allegations of fund diversion in Zee Entertainment and other Essel firms

Sebi to auction 61 Saradha Group property on July 17 to recover money

Capital markets regulator Sebi on Monday said it will auction 61 properties of Saradha Group on July 17 at a reserve price of over Rs 26 crore to recover money raised by the firm from the public through illicit schemes. The properties to go under the hammer include land parcels located in West Bengal, the Securities and Exchange Board of India (Sebi) said in a notice. The regulator said the e-auction will be conducted between 11 am and 1 pm on July 17. The total reserve price of these properties is pegged at Rs 26.22 crore. Sebi has engaged Quikr Realty to assist it in the sale of the properties and appointed C1 India as the e-auction provider. The development came after the Calcutta High Court passed an order in June 2022, whereby it directed Sebi to proceed with the auction of properties of the Saradha Group of Companies. The entire exercise was directed to be completed within three months. Saradha Group, a consortium of over 239 private companies, allegedly ran chit-fund operat

Sebi's SCORES platform disposes of 2,457 complaints against cos in May

A total of 2,457 complaints against companies and market intermediaries have been disposed of through Sebi's SCORES platform in May. At the beginning of May, as many as 2,984 complaints were pending, and 2,626 fresh complaints were received, according to the data released by markets regulator Sebi on Saturday. The regulator also noted that as of May 2023, 28 complaints were pending for more than three months, the data showed. These complaints were related to investment advisers, research analysts, corporate governance/ listing conditions, minimum public shareholding, venture capital funds and takeover/ restructuring. The average resolution time for a complaint was 31 days, as per the data. In a separate public notice, the markets watchdog Sebi mentioned 12 entities against whom complaints have been pending for more than three months on SCORES as of May 2023. The entities included Brightcom Group Ltd, Ankur Jain, Research Guru, Umesh Kumar Pandey proprietor -- Aurostar Investment

Sebi cancels Emkay Commotrade license for trading illegal paired contracts

Capital markets regulator Sebi on Friday cancelled the registration of Emkay Commotrade for facilitating its clients to trade in illegal 'paired contracts' on the National Spot Exchange Ltd (now defunct). "The noticee (Emkay Commotrade) by providing access for taking exposure to 'paired contracts' and did not have regulatory approval, thereby raises doubts on the competence of the noticee to act as a registered securities market intermediary. "The actions of the noticee have been and could be detrimental to the interest of the securities market and accordingly the noticee can no longer be called a 'fit and proper person' for holding the certificate of registration as a broker in the securities market," Sebi's Executive Director VS Sundaresan said in the order. The regulator has asked the broker to allow its existing clients or transfer their securities or funds held in its custody within 15 days. In case of failure of any clients to withdraw or transfer their securities or funds ..

Sebi's new FPI disclosure norms could pose roadblock for compliances

The recent proposal by Sebi to make disclosure norms more stringent for Foreign Portfolio Investments (FPIs) has reignited the discussion on Indias stand on promulgating ease of doing business

Sebi makes rule for upstreaming of client funds by brokers to clear corps

To safeguard clients' funds, capital markets regulator Sebi on Thursday came out with a framework that requires the upstreaming of all client funds received by stock brokers to clearing corporations. Under the framework, no clients' funds will be retained by stock brokers on an end-of-day (EoD) basis. Further, clients' funds will be upstreamed by stock brokers and clearing members to clearing corporations (CCs) only in the form of either cash, lien on Fixed Deposit Receipt (FDR) or pledge of units of mutual fund overnight schemes, Sebi said in a circular. Other than the FDRs (liened to CCs) and mutual fund overnight scheme (pledged to CCs), any remaining client funds with brokers will be upstreamed to a CC before a stipulated cut-off time. The new framework will come into effect from July 1, 2023, the Securities and Exchange Board of India (Sebi) said. With regards to upstreaming through FDRs created out of clients' funds, Sebi said stock brokers may create FDRs out of clients' fun

Sebi to digitise investor service requests, complaints by RTAs processing

Capital markets regulator Sebi on Thursday decided to provide a mechanism for processing of investors' service requests and complaints through online mode by RTAs and thereafter track the status as well as obtain periodical updates. Looking to digitise the process in two phases, Sebi said that the mechanism would provide benefits such as a database for service requests and complaints, online acknowledgement and intimation to the investor and online tracking of status of service requests and complaints by investors. At present, holders of physical security certificates are required to submit various documents to the registrars to an issue and share transfer agents (RTAs) with respect to various service requests such as issuance of duplicate security certificates, folio consolidation and services through depository participants such as dematerialisation and rematerialisation. In the first phase, Sebi said that all RTAs servicing listed companies will have a functional website. Such a

Sebi allows MFs to invest in repo transactions on commercial papers

In a bid to boost growth of the corporate bond market, regulator Sebi on Thursday allowed mutual funds to invest in repo transactions in securities such as Commercial Papers and Certificate of Deposits. In addition, the capital markets regulator said that mutual funds can participate in repo transactions only in "AA" and above rated corporate debt securities, according to a circular. In repo transactions, also known as a repo or sale repurchase agreement, securities are sold with the seller agreeing to buy them back at a later date. The instrument is used for raising short-term capital. For the purpose of consideration of credit rating of exposure on repo transactions for various purposes, including for potential risk class matrix, liquidity ratios and risk-o-meter, Sebi said the same will be as that of the underlying securities on a look-through basis. With regards to transactions where settlement is guaranteed by a clearing corporation, the exposure will not be considered for the

Sebi likely to change rules to track investments in PE and VC funds

The market regulator is doing this to identify the investors and the source of the money

Adani probe: Who really owns India's companies? It's time to find out

The regulator told the expert panel that it is investigating as many as 13 opaque entities that, as of March 2020, held between 14% and 20% across five publicly traded stocks od Adani Group

SAT overrules Sebi's order on cancelling of Brickwork Ratings' licence

India's markets appeals tribunal set aside a ruling by the markets regulator cancelling the licence of Brickwork Ratings India, according to an order published on the tribunal's website

SAT quashes 'unjustified' Sebi order nixing Brickwork Ratings licence

Directs regulator to issue fresh order on penalty while upholding certain violations